The main issue in the economy is that there are two generations of market participants who have only witnessed expansionary policies. …

For the first time in decades, central banks are tightening their monetary policy while governments continue to spend money as if nothing has changed. Large enterprises are not harmed by the most recent rate increases as long as credit conditions are still lax. …

Quantitative easing was designed as a tool to provide time for governments to implement structural reforms, boost growth and strengthen the economy. However, it has become a tool to increase the size of government and take increasingly riskier levels of debt. The United States economy has not strengthened in the…

An energy policy that bans investment in some technologies based on ideological views and ignores security of supply is doomed to a strepitous failure. The energy crisis in the European Union was not created by market failures or lack of alternatives. It was created by political nudging and imposition. Renewable…

The hawkish tone of the Fed’s chairman Jerome Powell on Friday 26th was unequivocal. His most important sentence, in my view, was the following: “With inflation running far above 2% and the labour market extremely tight, estimates of longer-run neutral are not a place to stop or pause.” What does…

Governments and central banks have become the lender of first resort instead of the last resort, and this is immensely dangerous. …

In the past three months, oil prices have corrected dramatically as global oil demand eased and concerns about a Chinese slowdown add to a possible European recession. …

The European Union has announced strict “energy efficiency” consumption reduction measures to cut 15% of gas demand as Russia threatens to shut down gas supplies. Some regions and cities have imposed aggressive heating and air condition limits as well as cuts in building lights. …

A few months ago, I wrote that the Chinese slowdown was much more than covid related and pointed to the challenges coming from the excessive weight of the real estate sector in the economy. A research paper by Rogoff and Yang estimated that the real estate sector constitutes 29 percent…